Question 5 of 6 2/1 Tes and ownerseny 3 TOUR Additional information: 1 2 3. Sales and variable costs of sales are expected to increase by 12 percent in the next quarter All sales are on credit with 60 percent collected in the quarter of sale and 40 percent collected in the following quarter Variable cost of sales consists of 40 percent materials, 40 percent direct labot, and 20 percent variable overhead. Materials are purchased on credit. Fifty percentare paid for in the quarter of purchase, and the remaining amount is paid for in the quarter after purchase. The inventory balance is not expected to change. Also, direct labar and variable overhead costs are paid in the quarter the expenses are incurred Fixed production costs (other than $9,000 of depreciation expense) are expected to increase by three percent. Fixed production costs requiring payment are paid in the quarter they are incurred Fixed selling and administrative costs other than $ 7,000 of depreciation expense) are expected to increme by two percent. Fixed selling and administrative costs requiring payment are paid in the quarter they are incurred The tax rate is expected to be 20 percent. All taxes are paid in the quarter they are incurred 4. 5 6. 7. No purchases of property, plant, or equipment are expected in the first quarter of 2021 la) Prepare a budgeted income statement for the first quarter of 2021 Cinrich Manufacturing Company Budested income Statement March 31, 2021 For the Year Ended March 31, 2021 For the Quarter Ended March 31, 2021 TULI Prepare a budgeted income statement for the first quarter of 2021. Cinrich Manufacturing Company Budgeted Income Statement w Income before taxes Taxes on income Variable cost of sales Fixed production costs Net Income/floss) Contribution margin Sales Fixed selling and administrative expenses Cinrich Manufacturing Company Budgeted Income Statement Fixed production costs Contribution margin Taxes on income Fixed selling and administrative expenses Net Income/loss) Variable cost of sales Sales Income before taxes > > Prepare a budgeted income statement for the first quarter of 2021. Cinrich Manufacturing Company Budgeted Income Statement Less Add > > Prepare a budgeted income statement for the first quarter of 2021 Cinrich Manufacturing Company Budgeted Income Statement $ Net Income!(loss) Taxes on income Fixed production costs Variable cost of sales Sales Contribution margin Income before taxes Fixed selling and administrative expenses Prepare a budgeted Income statement for the first quarter of 2021 Cinrich Manufacturing Company Budgeted Income Statement $ Contribution margin Variable cost of sales Taxes on income Sales Fixed production costs Income before taxes Net Income/(los) Fixed selling and administrative expenses